Inquiry into airfares in WA
What the inquiry, even though I feel it is a bit of a waste of time and money, may find, is that a high % of an airline's cost is airport and screening fees. The same councils that moan about high airfares are happy to have high airport charges, some of the revenue which goes back into town to fund projects that are non airport-related.
Apparently the Esperance council recently did a deal with Rex to negotiate a special discounted fare for locals, with lower fees and charges as an incentive. This is the sort of pro-active arrangement that could help to lower the cost of airfares.
Apparently the Esperance council recently did a deal with Rex to negotiate a special discounted fare for locals, with lower fees and charges as an incentive. This is the sort of pro-active arrangement that could help to lower the cost of airfares.
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But even when they were operating 737's that were getting emptier with the mining downturn, there was never any 'cheap' fares like you would expect.
Charging exhorbinant airfares just because people have little choice is ethically wrong. Why should they be penalised for living in remote parts of the country?
morno
Charging exhorbinant airfares just because people have little choice is ethically wrong. Why should they be penalised for living in remote parts of the country?
morno
The Airlines are there to make money, end of story.
Real Estate costs in the regions is a fraction of that in Sydney, transport costs are greater.
“A rule of government is never look into anything you don’t have to, never start an enquiry unless you know what its findings will be.”
Something applicable from Yes, Minister c 1982
Something applicable from Yes, Minister c 1982
Re .."Last time i tried to fly perth to kalgoorlie on sunday afternoon QF was $699 a seat. Similar fares on friday afternoon going the other way... "
'Tis only a 7 hour drive mate.....done it many times, both ways, and used my own car when I got ...
(a) - To Work, and
(b) - Home
Until I got the family 'squared away'.
So, If you fancy your time at $100 per hour, take the 'scenic route' and drive....
Cheerrrsss....
'Tis only a 7 hour drive mate.....done it many times, both ways, and used my own car when I got ...
(a) - To Work, and
(b) - Home
Until I got the family 'squared away'.
So, If you fancy your time at $100 per hour, take the 'scenic route' and drive....
Cheerrrsss....
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Pricing is an art not a science. It isn't, and frankly cannot be, cost plus a reasonable profit.
The magic price for anything is what the punters are prepard to pay. Charge anything more, you spill customers. Charge anything less and you have lost an opportunity. Figure out the maximum that they will pay, deduct all the government fees and charges, and what is left is your fare. And customers are prepared to pay more on thin and/or monopoly routes.
If you drop your fare 10% you need to increase your pax count by 10% just to break even. If you halve your prices you need to more than double your pax count. This just isn't going to happen on thin routes like this.
The magic price for anything is what the punters are prepard to pay. Charge anything more, you spill customers. Charge anything less and you have lost an opportunity. Figure out the maximum that they will pay, deduct all the government fees and charges, and what is left is your fare. And customers are prepared to pay more on thin and/or monopoly routes.
If you drop your fare 10% you need to increase your pax count by 10% just to break even. If you halve your prices you need to more than double your pax count. This just isn't going to happen on thin routes like this.
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Charging exhorbinant airfares just because people have little choice is ethically wrong. Why should they be penalised for living in remote parts of the country?
Why should private airlines be a charity?
If you drop your fare 10% you need to increase your pax count by 10% just to break even. If you halve your prices you need to more than double your pax count. This just isn't going to happen on thin routes like this.
The airlines that contribute to this enquiry will only be too happy to outline their operating costs which are substantial to most of these places, and how they need to charge a fare to make a profit, as they are a business. And politicians won't really be able to argue with that. Which is why the whole thing is a waste of money. Regulation of most of these routes has also provided some towns with an air service that otherwise they may not have.
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When it costs more to catch a cab to the airport than it does for a flight it distorts the perception of the average punter.
The cost of airfares in WA would, I suggest, be reflective of the cost of production rather than be indicative of any attempt by either of the two major airlines to rip off the travelling public in WA.
You only need to look at the dismal performance of both carriers - one more dismal than the other - and you can easily see that they are not charging what they need to charge to cover their costs and make a proper return on invested capital.
I doubt though that this would be a prevailing review of any parliamentary inquiry who are just there to grand stand and beat their own chests.
The cost of airfares in WA would, I suggest, be reflective of the cost of production rather than be indicative of any attempt by either of the two major airlines to rip off the travelling public in WA.
You only need to look at the dismal performance of both carriers - one more dismal than the other - and you can easily see that they are not charging what they need to charge to cover their costs and make a proper return on invested capital.
I doubt though that this would be a prevailing review of any parliamentary inquiry who are just there to grand stand and beat their own chests.
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Brisbane to Mount Isa, there's another hugely ripped off route.
I have lived in Mount Isa and I continue to have housing interests in Mount Isa, and I can tell you now that if it were an in demand route, then Qantas wouldn't be cutting flights and downsizing the aircraft. So you can't tell me that it's so flippin' expensive to fly that route simply because of supply and demand.
$2,000+ return for a family of 2 adults and a child with over 6 months lead time 😡.
Go on, keep telling me that's fair when I could pay a shedload less for a longer flight to other parts of the country, or even the world.
Not everyone in those parts of the country earn mining salaries.
morno
I have lived in Mount Isa and I continue to have housing interests in Mount Isa, and I can tell you now that if it were an in demand route, then Qantas wouldn't be cutting flights and downsizing the aircraft. So you can't tell me that it's so flippin' expensive to fly that route simply because of supply and demand.
$2,000+ return for a family of 2 adults and a child with over 6 months lead time 😡.
Go on, keep telling me that's fair when I could pay a shedload less for a longer flight to other parts of the country, or even the world.
Not everyone in those parts of the country earn mining salaries.
morno
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Also, remember during pilots dispute, foreign carriers were allowed to sell seats domestically in OZ. It only takes a stroke of a pollies pen.
TV news this evening showing BME - PER business fares this coming weekend at $5 - 6000. Yes, that's one way.
End of school holidays and all flights are heavily booked.
The truly disturbing thing about this is that, if history is any indicator, those seats will all be taken by pollies and their families on tax-payer funded jaunts.
End of school holidays and all flights are heavily booked.
The truly disturbing thing about this is that, if history is any indicator, those seats will all be taken by pollies and their families on tax-payer funded jaunts.
Last edited by WingNut60; 14th Jul 2017 at 12:53.
Via Melbourne. As anybody who wants to buy a ticket this weekend are too late as people with more foresight and planning have already bought their tickets and now there are none left. Typical click bait bull****.
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My favourite thing about this topic is when you read about people complaining about airfares to regional towns being so high and that they could pay the same or less to go from a capital to capital.
A classic example is Rex! people say the air fares from Mount gambier are too high to go to Melbourne or Adelaide. I Think it may be to do with 34 seats over 200nm compared to 180 seats over 400nm, especially if you are only half full or less!
A classic example is Rex! people say the air fares from Mount gambier are too high to go to Melbourne or Adelaide. I Think it may be to do with 34 seats over 200nm compared to 180 seats over 400nm, especially if you are only half full or less!
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